QV says national house prices up 6.5% in past year; Auckland up 11%, but rate of growth might be slowing now

Latest figures from QV.co.nz show that New Zealand house prices rose 6.5% in the year to March.

In Auckland, the hotspot for market activity, prices were up 11%. The average price in Auckland was NZ$620,605, which was 13.4% higher than the market peak in 2007.

The New Zealand average was NZ$429,061, which was 3.3% above 2007 levels.

However, QV research director Jonno Ingerson said that while nationwide values were still increasing, there were signs that the rate of increase had slowed in the past month or two in Auckland, Hamilton, Christchurch and Dunedin.

"However it is still too early to tell if this is the start of a more widespread slowing of values."

Ingerson said the markets in the provincial centres remained variable with no universal trends evident either over the past three months or the past year.

The number of properties on the market remains limited, particularly in Auckland.

"This has constrained the number of sales at a time when buyers have generally shown more confidence and have been keen to purchase."

Within the Auckland region areas such as Rodney and the old Auckland City continued to show somewhat slower rates of growth over the past three months than had previously been seen and in comparison to other areas. But overall, values were still markedly above last year, with North Shore seeing the greatest increase at 11.6%.

QV Operations Manager Kerry Stewart said the continued lack of Auckland listings had worsened over the past month as people started to hold on to their properties more, especially in the wake of the release of the draft unitary plan.

"Many buyers are also starting to feel that house prices are unreasonable and are waiting it out to see if houses become more affordable."

Outside of Auckland, the main cities continued to increase, though at varying rates.

Hamilton grew 1.3% in the past three months and 4.6% in the year.

Tauranga continued to fluctuate within a narrow range, rising 0.8% over the past three months but just 0.3% on this time last year.

Values in the Wellington area have increased since November after being relatively steady for most of 2012. Values there are now 2.1% above this time last year.

QV Valuer Pieter Geill said that although the Wellington market had been busy, it had been relatively unpredictable, with houses that were expected to sell quickly sticking around for longer.

"Houses priced too high, or perceived as quirky or in need of renovation appear to be putting younger buyers off," he said.

"Houses around the NZ$300,000 mark are selling quickly in the Hutt Valley, with many buyers tapping into the KiwiSaver first home deposit subsidy, which in the Hutt Valley is capped at house and land packages valued at NZ$300,000. In Wellington City there has been good activity around properties in the NZ$1-1.3 million bracket as well as entry level homes around NZ$450,000. The apartment market is slow at present."

Christchurch values remained significantly above last year with a 7.8% increase. The outlying areas such as Waimakariri and Selwyn continued to hold their value, although the increase in recent months has been slower than seen previously.

QV Valuer Daryl Taggart said on Christchurch: "The market is still quite strategic with vendors not wanting to show their hand too much if they can help it. The outlying areas appear to be not selling like they used to but could see slight lifts again in the future."

Dunedin had seen a 1.7% increase over the past three months, leaving it 4.4% up on last year.

The main provincial centres were still experiencing increases in values, albeit at different rates around the country. Some areas where values had previously been faltering, such as Rotorua (up 0.5% over the past three months) and Gisborne (up 1.9% over the past three months) had also seen a turn around and were now experiencing increases. Whangarei continued to buck the trend, with a 0.9% decrease over the past three months.